USD/CHF Price Analysis: Rising wedge keeps sellers hopeful below 0.9850

USD/CHF fades bounce off one-week low inside a bearish chart pattern.
Downbeat oscillators add strength to the bearish bias but 0.9850 appears the key support.
Buyers need validation from 1.0030 to retake control.

Anil Panchal FXStreet

USD/CHF remains pressured after the intraday low, extending the previous day’s pullback from a four-month high to 0.9950 heading into Wednesday’s European session. In doing so, the Swiss currency (CHF) pair stays inside a five-week-old rising wedge bearish chart pattern.

In addition to the quote’s latest weakness and the bearish formation around the multi-day top, the bearish MACD signals and the downbeat RSI (14), not oversold, also favor USD/CHF bears of late.

That said, one-week-old horizontal support near 0.9915 lures the intraday sellers ahead of highlighting the stated wedge’s support line, close to 0.9850 by the press time.

Should the quote remains bearish past 0.9850, a slump to the monthly low of around 0.9780 appears imminent during the theoretical south-run targeting the 0.9310 level.

On the flip side, the upper line of the stated wedge, around 1.0030, restricts short-term USD/CHF upside before directing buyers towards the tops marked in June and May, near 1.0050 and 1.0065 in that order.

If USD/CHF bulls keep the reins past 1.0065, the odds favoring a gradual run-up towards the year 2019 peak surrounding 1.0240 can’t be ruled out.

USD/CHF: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	0.9948
Today Daily Change	-0.0024
Today Daily Change %	-0.24%
Today daily open	0.9972

Trends
Daily SMA20	0.9802
Daily SMA50	0.9695
Daily SMA100	0.9687
Daily SMA200	0.9539

Levels
Previous Daily High	1.0021
Previous Daily Low	0.9916
Previous Weekly High	0.9954
Previous Weekly Low	0.9781
Previous Monthly High	0.9966
Previous Monthly Low	0.948
Daily Fibonacci 38.2%	0.9956
Daily Fibonacci 61.8%	0.9981
Daily Pivot Point S1	0.9919
Daily Pivot Point S2	0.9865
Daily Pivot Point S3	0.9814
Daily Pivot Point R1	1.0024
Daily Pivot Point R2	1.0075
Daily Pivot Point R3	1.0129

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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